Tesla Motors (NASDAQ: TSLA) originally unveiled the Model S in March 2009 with a base price
of $57,400 ($49,900 after federal tax credits). Today, Model S is the
most award-winning car of the year and the base price remains at
$57,400, the same price set over three and a half years ago. During
this same period of time most automotive companies have had at least
three price increases and general inflation (CPI) has gone up 8.75
percent. A straight 8.75 percent CPI increase would now yield a base
price for Model S of $62,400, an increase of $5,000. Tesla is
increasing prices only half that amount, giving Model S a new base
price of $59,900 before federal tax credits.
The price increase announced today will be for new reservations
starting January 1, 2013. These new reservations will begin
deliveries several months later, which means the new prices will
actually go into effect over four years after Tesla originally set base pricing for Model S.